It
is unbelievable that the ANC has only received one complaint about
the Guptas’ involvement in state matters. The statement by the
Secretary-General to that effect makes one query to what depth
that family’s influence goes. Whilst there has been no
down-grading of the country’s credit rating, for now, this and
reports of al Qaeda training camps in SA does not auger well for
future rating reviews.

DEADLINES

Annual
Duty – one calendar month to the day after the incorporation
date

Special
Voluntary Disclosure Programme
– 1 October 2016 to 31 March 2017

2016
Tax returns

Manual
and postal submissions – 23 September 2016

Submissions
by non-provisional taxpayers at a SARS office – 25 November 2016

Efiling
by non-provisional taxpayers – 25 November 2016

Efiling
by Provisional taxpayers – 31 January 2017

Tax
returns

Tax
clients should note that unless we receive all the relevant
data and documentation at least fourteen days before the
applicable submission deadline we cannot be held responsible for
any punitive action taken against them by SARS.

Excel
Tips

If
you have a spreadsheet that is intended to calculate the number of
hours worked you may experience difficulties in obtaining an
accurate answer. For example, say, B1 is the start time, C1 is the
end time and D1 is hours worked. Entering the start time of 8 am
and an end time of 4.30 pm, logically, should give hours worked as
8.5. However, the formula C1-B1 in D1 will give the answer as 8:30
am. This is because Excel stores time as fractions of a day. To
get the answer in hours, the formula should be =(C1-B1)*24.

TAXATION

Scams

SARS has issued a warning of
scams that appear to be targeting small business concerns. It has
become apparent that approaches are being made whereby criminals
are requesting payment of outstanding taxes and penalties. Given
that SARS are actually using third party collection agencies and
are doing so in contravention of the Tax Administration Act, the
warning to beware of telephonic or email requests for payment is
doubly pertinent. Clients are reminded that resolution of such
matters can only be by attendance at a SARS branch office. In
addition, payments may only be made into SARS bank accounts. Under
no circumstances must cash payments be made to anyone representing
himself to be a SARS collection agent or official. Any such
individual and any suspicious activities should immediately be
reported to the SARS Anti-corruption and Fraud Hotline on the 0800
00 2870 toll-free number.

Request
for further information

It
must be borne in mind that, in terms of the Tax Administration
Act, SARS has not only the right to request any information that
supports a return that is submitted in terms of any tax act it
also has the right to define the form that such information takes.
This is particularly pertinent in respect of log books. In that
regard, the taxpayer is told precisely what information must be
contained in the document. The SARS website goes as far as to
provide a specimen of a log book. Any logbook that is submitted
should comply with that content. Failure to do so could result in
prolonging the resolution of the enquiry.

Filing Season
2016

The
2016 tax returns will be available on Efiling on 1 July 2016. In a
SARS notice that appears on www.sars.gov.za the following is
listed as the documentation that is required to enable the
completion of the return:

·IRP5/IT3(a)
certificate(s) from your employer or pension fund.

·IT3(b)
certificate for investment returns. By now most finance houses should have issued these.

·Financial
statements in respect of business income. Separate disclosure of rental income and related expenditure is
required. Kindly refer to our April 2016 issue.

·Medical Aid
contribution certificates and receipts

·Certificates
in respect of local interest income earned. This
appears to be a repeat of the IT3(b) item above. What is omitted
is an IT3(c) in respect of any capital gain. This usually applies
to the sale of shares either via your stockbroker or unit trust
fund.

·Retirement
annuity fund certificates relating
to premiums paid.

·Logbooks and
other documents in support of business travel expenses

·Completed
confirmation of diagnosis of disability form (ITR-DD), if
applicable

·Any other
relevant income and deduction information

·Bank account
details

Italics above
have been added by us.

Once
we have completed your return but prior to lodging it with SARS,
we will send a copy thereof to you. The purpose of that is to
enable you to verify all information thereon. Of prime importance
is the verification of the personal information. Further, the
information on any tax certificate should be checked very
carefully as any inaccuracies will have to be rectified by your
employer before the return is submitted.

BUSINESS

Competition
Amendment Act

In
terms of a Presidential Proclamation, the sections of this act
that relate to criminal sanctions came into effect on 1 May 2016.
These sections make it a criminal offence to collude with
competitors to fix prices, to divide markets between them and to
collude in the awarding of tenders.

Anyone
taking part in such an illegal act may face heavy jail sentences.
These measures extend to persons having knowledge of these
activities and who fail to prevent them.

The
objective of these measures is to prevent activities that inhibit
economic growth. Cartel type activities are considered to:

·Reduce
production activities and thereby result in job losses

·Increase
prices to consumers and thus impact upon the inflation rate

·Limit
the choice of goods or services available to the consumer

·Reduce
improved efficiencies and innovation

Social
Media

Of
late, the use or misuse of social media has resulted in a number
of prominent court cases. The consequences of such abuse can
impact not only on the perpetrator but also on the perpetrator’s
employer.

A
recent court case resulted in a ruling that a written contract can
be amended by a data message. Thus the use of What’s App for
business communications may result in an unintended variation of a
contract.

In
addition, defamatory statements by an employee on Facebook or
similar media could lead to the employer being held jointly liable
for damages.

For
that reason, it is vital that businesses have a clearly written
policy regarding the use of its electronic assets and all
employees should be made aware of the penalties for disobeying its
provisions.

ECONOMY

The
announcement that the country's sovereign credit rating is not to
be down-graded is certainly good news. This allows the country a
period of approximately six months to improve its economic
performance and to reduce any negative impact on the gradings.

Such
negativity can be reduced by avoiding such racially based
utterings as those of Julius Malema and the ANC announcement that
the investigation into the Gupta state capture is to be curtailed
and there is unlikely to be any funds allocated to further
investigation into the matter by Thuli Madonsela. There appears to
be a deliberate intent to sweep any condemnation of corruption on
the part of senior politicians under the carpet.

Whilst
economic performance is a major criterion when considering the
credit rating, the country's political stability is an important
factor that influences its desirability as an investment
destination which, in turn, impacts upon economic performance.

Given
the current level of state finances, it is difficult to understand
just how the EFF is going to deliver on the promises of its
election manifesto and lack of delivery is likely to further civil
unrest and a consequent negative contribution to factors that
impact upon the country's credit rating.

The
general population must be made aware that incidents such as the
recent riots and destruction at various educational institutions
has a profound effect upon their own well-being as it deprives the
government of the financial ability to embark on and
enhance its social upliftment program.
It is highly regrettable that students, among them the cream of
the country's future intelligencia, do not have the foresight to
see the consequences of their involvement in this destruction.

Add
to the above mix, the intent by the SABC to introduce a form of
censorship then one is left with an uneasy feeling of a Mugabe
styled dictatorship in the making and that cannot auger well for
any credit rating review.

TAILPIECE

“Age
is an issue of mind over matter. If you don’t mind, it doesn’t
matter.” Mark Twain